The fire, which started at about 2.30pm near Dixons Road at Upwey, was being fought by 150 firefighters, supported by aircraft and trucks.

Elsewhere, a large fire was threatening residents on the outskirts of Daylesford.

Mr Monk said urgent threat messages had been issued to communities east of the tourist town, including Coomoora, the Wheatsheaf/Wombat Estate, Bullarto South, Bullarto, Leonards Hill, Musk, Woodburn and Newbury. "We're pouring a lot of resources into that fire," Mr Monk said.

Another fire was burning near Won Wron, south-east of Traralgon, and Warburton residents remained on high alert as fires continued to threaten.

The new fires, fuelled by a return to high temperatures across southern Victoria yesterday, came as police said the death toll from the February 7 fires had reached 210. The death of a Strathewen resident at the weekend brought the toll from that town to 43.

Yesterday, two volunteer firefighters battling the Dandenongs blaze suffered minor injuries when their truck was destroyed in Upper Ferntree Gully. Another fire truck was damaged at Scoresby.

Kim Brown, of Belgrave Heights, said she saw the fire go within about 50 metres of her Heath Road house. "I saw a lot of smoke, it was bright orange. It was huge," she said. "I grabbed the dog and we left."

She was staying overnight with her two children at her friend's video store.

Ms Brown said seven houses in her street were destroyed in the 1983 Ash Wednesday fire, so she never thought of staying.

Children at Belgrave South Primary School were evacuated around 3pm as fire threatened. Brody Ross-Tarvis, 11, was among those who fled. "We were all inside talking and we heard the alarm go off. And then we saw a fire truck go past our window and I thought, 'oh golly'. We saw all the smoke."

Karmena Baumanis, of Belgrave Heights, said the fire came within 10 metres of her family's Mount Morton Road home.

Fire surrounded a neighbour's property before a helicopter water bombed the house. She evacuated with the children, but her husband stayed behind to try to protect the property.

In Upwey, some residents used ladders to climb roofs and hose down their houses. Up to a dozen fire trucks lined Glenfern Road defending houses as smoke billowed up the valley from the Monbulk Creek basin.

Earlier, a wall of flames pushed back firefighters as the blaze roared up the valley.

As the firefighters fought to save homes, residents watched, some clutching bandannas to their faces as thick smoke swirled with the wind.

Others clutched beers and took photographs. The Elvis firefighting helicopter did small laps overhead, dumping water in an attempt to control the blaze. "We're bombing it like hell," one firefighter said.

The fire came within 30 metres of houses in Glenfern Road before firefighters managed to push it back. "It was here and it's just died," Glenfern Road resident Joe Castro said.

"On the north side of Glenfern Road are all the houses and on the south side is the fire. At one point it reached within 30 metres of the road and they put it out, Mr Castro said.

Last night, brothers Leon and David Humphries said they had saved their grandmother's house, Crofters Cottage, in Chaundy Road. "The fire's passed through here," David Humphries told The Age.

"We're just putting out spot fires at the moment … We saved the houses, saved Crofters Cottage, saved our lives. We've lost two horses, not sure where they are at the moment.

In Warburton, with the Black Saturday fires fresh in residents' minds, many decided to evacuate, most leaving for the nearby Lilydale relief centre.

Back in the almost deserted town, shops displayed signs saying closed due to the fire threat. "Dear Friends," read a cardboard sign stuck to the front of the Gainsborough Video store, "We have put our fire plan into place and left East Warby. Due to impending fires we will be closed until further notice. All late fees of course will not be charged on these days. Please take care and be safe."